How to get better commercial insurance options for your mid-market customers

Every broker who works in commercial lines knows the mid-market is a special place, full of complex risks, evolving businesses and premiums that defy algorithms. Mid-market customers are savvy and price conscious. They’re willing to invest both in the price of their insurance and in risk mitigation measures so long as they feel they’re getting the right protection. 

This presents a terrific opportunity for brokers, particularly in the current environment, in which many insurers, Intact among them, are broadening their appetites. We want to collaborate with brokers to come up with insurance solutions right for your mid-market customers. 

Here’s how you can leverage the current trends to get better commercial insurance options.  

Get that quote! 

Don’t eliminate markets just because you haven’t traditionally quoted that type of risk with them or because they have turned down a specific risk before. At Intact, our appetite, capacity and product suite have all expanded over the last few years. Between the commercial and specialty expertise we onboarded through the RSA acquisition and our overall stable financial position, we can find the right solution for your customer in most cases – even on large and complex risks and in sectors in which we were not active before.  

Case study: Hospitality is an industry segment that many carriers, Intact included, approach cautiously. But we absolutely write the right risks in it. We recently bound a $90K policy for a hotel with a restaurant, lounge, restaurant and pool because the broker ably advocated for the customer, sharing information that showed us the owner was experienced in hotel operations and demonstrated commitment to above average building maintenance.   

Know your customers 

Your customer is at the heart of what we do. Getting them the right solution means understanding the ins and outs of who they are, what they do and where they operate. At Intact, we want to get your customers the right quote as quickly as possible, so we focus in on the questions that really matter while ensuring we get the information we need.   

Case study: We recently wrote a $100K+ policy for a non-profit organization that supports employment opportunities for people with different levels of abilities. The business is complex, with more than 25 locations and services such as counseling, trade skills training, wood products manufacturing, recycling depot, prosthetic device fitting, group homes and respite care. We won the business because of the quality of our product – and also because of the speed with which we issued the policy.  

Leverage tools like soft credit checks 

A business environment that’s digesting high inflation and a cost-of-living crisis means all customers are price-conscious. Ensure the carrier has all the information they need to give your customer the best quote. And don’t forget to leverage all available tools and discounts. At Intact, using Stability Advantage, a soft personal credit check on a business customer’s quote, can drive the price down by as much as 25%, and increase the binding rate by 20%.  

Case study: On a recent policy for a three-location wholesaler of equipment for bars, hotels and restaurants, applying Stability Advantage let the broker get their customer a competitive price while offering them a $10 million combined liability limit and a $200K employee dishonesty limit.  

Ask for the ‘why’ behind decisions 

If you don’t understand an insurer’s decision – whether on price, decline or conditions – ask! An insurer should be prepared – and happy – to explain. At Intact, we’ve been working hard to upskill our underwriters so that they can deliver stellar product knowledge with the expertise necessary to both be flexible and to explain the rationale behind our decisions.  

Case study: We recently underwrote a six-figure policy for a general contractor specializing in excavation, paving and occasional demolition. This can be a challenging class with some high-risk exposure. But thanks to broker advocacy and insight, we successfully bound the policy.  

Communicate and collaborate with your carriers  

Open, ongoing communication with insurers improves the experience for you and your customers. Intact’s most recent Voice of the Broker survey showed high (and climbing) broker satisfaction with key service performance indicators such as ease of dealing with our team, explanation of underwriting decisions, employees’ knowledge of products and communication on appetite.   

Case study: Communication was key in the case of a growing mobile locksmith business we recently underwrote. With close broker and cross-team commercial underwriter collaboration, we were able to create a tailored package that bundled the customer’s fleet, garage and P&C coverage.  

Think long-term on product  

The economy evolves and so must any business that wants to thrive. Whether the market is hard or soft, consider your customer’s long term insurance needs. They will not always be a one-location start-up. They’ll grow, diversify, reposition. Consider an insurer with a product suite that gives customers options and reliability as their needs evolve. That’s the approach we’ve taken at Intact with our EDGE Complete and Liability EDGE products, which allow customers to tailor their insurance package as their business changes. 

Case study: When writing a policy for a recently constructed public storage facility that already plans to add buildings and capacity, we crafted a policy at the customer’s current total insurance value of $1M with capacity to expand to its potential total insured value of $5M. 

Finally – Think long-term on price 

Nobody likes pricing volatility. To shield customers from price swings – and yourself from the toil of annual remarketing – choose an insurer with a pricing strategy that’s sustainable. Intact maintains our disciplined approach to underwriting throughout all market cycles because we want to be a stable insurer your customers can depend on.  

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Looking to grow your mid-market commercial lines book with Intact? Talk to your Intact Insurance representative about the strong commercial lines value proposition we offer to you and your customers.  

Additional resources, exclusive to Intact brokers 

Need more resources to grow your commercial lines book? These Pathways courses, exclusive to Intact brokers and available on the Intact Portal, can help: 

• Commercial Lines Submissions Essentials – This 1-hour eLearning shows you what information underwriters need to get your customers that best price. 

• The Intact Commercial Advantage – This highly rated 1.5-hour instructor-led course takes you deep into how policies are constructed and how to explain them to customers. 

• Broad Form Property & EDGE Complete – Take this 1-hour instructor led course to find how the flexibility of our EDGE product grows as your customer’s business grows. 

• How to Approach Renewals – This 20-minute eLearning will make your renewal conversations with customers easier and more efficient!